35 ,West Buildings, Worthing, BN11 3BS
HIGH YIELD HMO DEVELOPMENT
NOW FULLY FUNDED.
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35 West Buildings is a Victorian Mixed Use building located in the centre of Worthing on a road adjacent to the seafront, The opportunity was sourced pre-market from a local agent. The property went through the T5 selection criteria* which critically assesses location, cost/M2, yield, exit strategies and primary and secondary rental markets. The property has been legally secured.
The property is late Victorian and has a large footprint, with access from the rear twitten as well as the front. The property has a significant sqft area which makes it very versatile. Our plan is to turn the upper parts into a 1 bed flat and a 4 HMO style bed flat. This can be done under Permitted Development. We will then retain the commercial element. Worthing council have identified this parade as strategically important and it will attract significant investment and potential grants.
The property will be purchased for £245k, having secured an additional £15 discount from originally agreed price and £55k off asking price. The project will be completed and ready to rent 14 weeks from purchase completion. The property will be let on an individual room basis to professional sharers. There is a shortage of good quality professional sharer accommodation in Worthing. The rooms in the flat will let at £600 -
£650 PPPM*, the 1 bed flat will let for £800-900 PCM and the shop will let for £700- 750 PCM. This will give a gross return of £46.8k - £51k PA per annum, or a minimum 11.4% gross yield.
The property will be purchased with Lloyds Bank development finance and then refinanced with them at project completion.